1.1.................... moves to amend H.F. No. 600, the second engrossment, as follows:
1.2Page 1, after line 4, insert:

1.5Page 2, after line 20, insert:


1.8    Section 1. [181.9445] EARNED SICK AND SAFE TIME.
1.9    Subdivision 1. Definitions. (a) For the purposes of this section and section 177.50, the
1.10terms defined in this subdivision have the meanings given them.
1.11(b) "Commissioner" means the commissioner of labor and industry or authorized designee
1.12or representative.
1.13(c) "Domestic abuse" has the meaning given in section 518B.01.
1.14(d) "Earned sick and safe time" means leave, including paid time off and other paid leave
1.15systems, that is paid at the same hourly rate as an employee earns from employment that
1.16may be used for the same purposes and under the same conditions as provided under
1.17subdivision 3.
1.18(e) "Employee" means any person who is employed by an employer, including temporary
1.19and part-time employees, who performs work for at least 80 hours in a year for that employer
1.20in Minnesota. Employee does not include an independent contractor.
1.21(f) "Employer" means a person who has one or more employees. Employer includes an
1.22individual, a corporation, a partnership, an association, a business trust, a nonprofit
1.23organization, a group of persons, a state, county, town, city, school district, or other
2.1governmental subdivision. An employer includes a person that hires temporary employees
2.2through an employment service.
2.3(g) "Family member" means:
2.4(1) an employee's:
2.5(i) child, foster child, adult child, legal ward, or child for whom the employee is legal
2.6guardian;
2.7(ii) spouse or registered domestic partner;
2.8(iii) sibling, stepsibling, or foster sibling;
2.9(iv) parent or stepparent;
2.10(v) grandchild, foster grandchild, or stepgrandchild; or
2.11(vi) grandparent or stepgrandparent;
2.12(2) any of the family members listed in clause (1) of a spouse or registered domestic
2.13partner;
2.14(3) any individual related by blood or affinity whose close association with the employee
2.15is the equivalent of a family relationship; and
2.16(4) up to one individual annually designated by the employee.
2.17(h) "Health care professional" means any person licensed under federal or state law to
2.18provide medical or emergency services, including doctors, physician assistants, nurses, and
2.19emergency room personnel.
2.20(i) "Prevailing wage rate" has the meaning given in section 177.42 and as calculated by
2.21the Department of Labor and Industry.
2.22(j) "Retaliatory personnel action" means:
2.23(1) any form of intimidation, threat, reprisal, harassment, discrimination, or adverse
2.24employment action, including discipline, discharge, suspension, transfer, or reassignment
2.25to a lesser position in terms of job classification, job security, or other condition of
2.26employment; reduction in pay or hours or denial of additional hours; the accumulation of
2.27points under an attendance point system; informing another employer that the person has
2.28engaged in activities protected by this chapter; or reporting or threatening to report the actual
2.29or suspected citizenship or immigration status of an employee, former employee, or family
2.30member of an employee to a federal, state, or local agency; and
3.1(2) interference with or punishment for participating in any manner in an investigation,
3.2proceeding, or hearing under this chapter.
3.3(k) "Sexual assault" means an act that constitutes a violation under sections 609.342 to
3.4609.3453 or 609.352.
3.5(l) "Stalking" has the meaning given in section 609.749.
3.6(m) "Year" means a regular and consecutive 12-month period, as determined by an
3.7employer and clearly communicated to each employee of that employer.
3.8    Subd. 2. Accrual of earned sick and safe time. (a) An employee accrues a minimum
3.9of one hour of earned sick and safe time for every 30 hours worked up to a maximum of 48
3.10hours of earned sick and safe time in a year. Employees may not accrue more than 48 hours
3.11of earned sick and safe time in a year unless the employer agrees to a higher amount.
3.12(b) Employers must permit an employee to carry over accrued but unused sick and safe
3.13time into the following year. The total amount of accrued but unused earned sick and safe
3.14time for an employee may not exceed 80 hours at any time, unless an employer agrees to a
3.15higher amount.
3.16(c) Employees who are exempt from overtime requirements under United States Code,
3.17title 29, section 213(a)(1), as amended through the effective date of this section, are deemed
3.18to work 40 hours in each workweek for purposes of accruing earned sick and safe time,
3.19except that an employee whose normal workweek is less than 40 hours will accrue earned
3.20sick and safe time based on the normal workweek.
3.21(d) Earned sick and safe time under this section begins to accrue at the commencement
3.22of employment of the employee.
3.23(e) Employees may use accrued earned sick and safe time beginning 90 calendar days
3.24following commencement of their employment. After 90 calendar days of employment,
3.25employees may use earned sick and safe time as it is accrued.
3.26    Subd. 3. Use of earned sick and safe time. (a) An employee may use accrued earned
3.27sick and safe time for:
3.28(1) an employee's:
3.29(i) mental or physical illness, injury, or other health condition;
3.30(ii) need for medical diagnosis, care, or treatment of a mental or physical illness, injury,
3.31or health condition; or
3.32(iii) need for preventive medical or health care;
4.1(2) care of a family member:
4.2(i) with a mental or physical illness, injury, or other health condition;
4.3(ii) who needs medical diagnosis, care, or treatment of a mental or physical illness,
4.4injury, or other health condition; or
4.5(iii) who needs preventive medical or health care;
4.6(3) absence due to domestic abuse, sexual assault, or stalking of the employee or
4.7employee's family member, provided the absence is to:
4.8(i) seek medical attention related to physical or psychological injury or disability caused
4.9by domestic abuse, sexual assault, or stalking;
4.10(ii) obtain services from a victim services organization;
4.11(iii) obtain psychological or other counseling;
4.12(iv) seek relocation due to domestic abuse, sexual assault, or stalking; or
4.13(v) seek legal advice or take legal action, including preparing for or participating in any
4.14civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault,
4.15or stalking;
4.16(4) closure of the employee's place of business due to weather or other public emergency
4.17or an employee's need to care for a family member whose school or place of care has been
4.18closed due to weather or other public emergency; and
4.19(5) when it has been determined by the health authorities having jurisdiction or by a
4.20health care professional that the presence of the employee or family member of the employee
4.21in the community would jeopardize the health of others because of the exposure of the
4.22employee or family member of the employee to a communicable disease, whether or not
4.23the employee or family member has actually contracted the communicable disease.
4.24(b) An employer may require notice of the need for use of earned sick and safe time as
4.25provided in this paragraph. If the need for use is foreseeable, an employer may require
4.26advance notice of the intention to use earned sick and safe time but must not require more
4.27than seven days' advance notice. If the need is unforeseeable, an employer may require an
4.28employee to give notice of the need for earned sick and safe time as soon as practicable.
4.29(c) When an employee uses earned sick and safe time for more than three consecutive
4.30days, an employer may require reasonable documentation that the earned sick and safe time
4.31is covered by paragraph (a). For earned sick and safe time under paragraph (a), clauses (1)
4.32and (2), reasonable documentation may include a signed statement by a health care
5.1professional indicating the need for use of earned sick and safe time. For earned sick and
5.2safe time under paragraph (a), clause (3), an employer must accept a court record or
5.3documentation signed by a volunteer or employee of a victims services organization, an
5.4attorney, a police officer, or an antiviolence counselor as reasonable documentation. An
5.5employer must not require disclosure of details relating to domestic abuse, sexual assault,
5.6or stalking or the details of an employee's or an employee's family member's medical
5.7condition as related to an employee's request to use earned sick and safe time under this
5.8section.
5.9(d) An employer may not require, as a condition of an employee using earned sick and
5.10safe time, that the employee seek or find a replacement worker to cover the hours the
5.11employee uses as earned sick and safe time.
5.12(e) Earned sick and safe time may be used in the smallest increment of time tracked by
5.13the employer's payroll system, provided such increment is not more than four hours.
5.14    Subd. 4. Retaliation prohibited. An employer shall not take retaliatory personnel action
5.15against an employee because the employee has requested earned sick and safe time, used
5.16earned sick and safe time, or made a complaint or filed an action to enforce a right to earned
5.17sick and safe time under this section.
5.18    Subd. 5. Reinstatement to comparable position after leave. An employee returning
5.19from a leave under this section is entitled to return to employment in the employee's former
5.20position. If, during a leave under this section, the employer experiences a layoff and the
5.21employee would have lost a position had the employee not been on leave, pursuant to the
5.22good faith operation of a bona fide layoff and recall system, including a system under a
5.23collective bargaining agreement, the employee is not entitled to reinstatement in the former
5.24or comparable position. In such circumstances, the employee retains all rights under the
5.25layoff and recall system, including a system under a collective bargaining agreement, as if
5.26the employee had not taken the leave.
5.27    Subd. 6. Pay and benefits after leave. An employee returning from a leave under this
5.28section is entitled to return to employment at the same rate of pay the employee had been
5.29receiving when the leave commenced, plus any automatic adjustments in the employee's
5.30pay scale that occurred during leave period. The employee returning from a leave is entitled
5.31to retain all accrued preleave benefits of employment and seniority as if there had been no
5.32interruption in service, provided that nothing under this section prevents the accrual of
5.33benefits or seniority during the leave pursuant to a collective bargaining or other agreement
5.34between the employer and employees.
6.1    Subd. 7. Part-time return from leave. An employee, by agreement with the employer,
6.2may return to work part time during the leave period without forfeiting the right to return
6.3to employment at the end of the leave, as provided under this section.
6.4    Subd. 8. Notice and posting by employer. (a) Employers must give notice that
6.5employees are entitled to earned sick and safe time, including the amount of earned sick
6.6and safe time, the accrual year for the employee, and the terms of its use under this section;
6.7that retaliation against employees who request or use earned sick and safe time is prohibited;
6.8and that each employee has the right to file a complaint or bring a civil action if earned sick
6.9and safe time is denied by the employer or the employee is retaliated against for requesting
6.10or using earned sick and safe time.
6.11(b) Employers must supply employees with a notice in English and other appropriate
6.12languages that contains the information required in paragraph (a) within 60 days of
6.13commencement of employment or the effective date of this section, whichever is later.
6.14(c) Employers shall display a poster in a conspicuous and accessible place in each
6.15establishment where employees are employed that contains all information required under
6.16paragraph (a). The commissioner shall create and make available to employers a poster and
6.17a model notice that contains the information required under paragraph (a) for their use in
6.18complying with this section.
6.19(d) An employer that provides an employee handbook to its employees must include in
6.20the handbook notice of employee rights and remedies under this section.
6.21    Subd. 9. Required statement to employee. (a) Upon request of the employee, the
6.22employer must provide, in writing or electronically, current information stating the
6.23employee's amount of:
6.24(1) earned sick and safe time available to the employee; and
6.25(2) used earned sick and safe time.
6.26(b) Employers may choose a reasonable system for providing the information in paragraph
6.27(a), including but not limited to listing information on each pay stub or developing an online
6.28system where employees can access their own information.
6.29    Subd. 10. Employer records. (a) Employers shall retain accurate records documenting
6.30hours worked by employees and earned sick and safe time taken and comply with all
6.31requirements under section 177.30.
6.32(b) An employer must allow an employee to inspect records required by this section and
6.33relating to that employee at a reasonable time and place.
7.1    Subd. 11. Confidentiality and nondisclosure. (a) If, in conjunction with this section,
7.2an employer possesses (1) health or medical information regarding an employee or an
7.3employee's family member; (2) information pertaining to domestic abuse, sexual assault,
7.4or stalking; (3) information that the employee has requested or obtained leave under this
7.5section; or (4) any written or oral statement, documentation, record, or corroborating evidence
7.6provided by the employee or an employee's family member, the employer must treat such
7.7information as confidential. Information given by an employee may only be disclosed by
7.8an employer if the disclosure is requested or consented to by the employee, when ordered
7.9by a court or administrative agency, or when otherwise required by federal or state law.
7.10(b) Records and documents relating to medical certifications, recertifications, or medical
7.11histories of employees or family members of employees created for purposes of this section
7.12or section 177.50 must be maintained as confidential medical records separate from the
7.13usual personnel files.
7.14    Subd. 12. No effect on more generous sick and safe time policies. (a) Nothing in this
7.15section shall be construed to discourage employers from adopting or retaining earned sick
7.16and safe time policies that meet or exceed, and do not otherwise conflict with, the minimum
7.17standards and requirements provided in this section.
7.18(b) Nothing in this section shall be construed to limit the right of parties to a collective
7.19bargaining agreement to bargain and agree with respect to earned sick and safe time policies
7.20or to diminish the obligation of an employer to comply with any contract, collective
7.21bargaining agreement, or any employment benefit program or plan that meets or exceeds,
7.22and does not otherwise conflict with, the minimum standards and requirements provided in
7.23this section.
7.24(c) Employers who provide earned sick and safe time to their employees under a paid
7.25time off policy or other paid leave policy that meets or exceeds, and does not otherwise
7.26conflict with, the minimum standards and requirements provided in this section are not
7.27required to provide additional earned sick and safe time.
7.28(d) An employer may opt to satisfy the requirements of this section for construction
7.29industry employees by:
7.30(1) paying at least the prevailing wage rate as defined by section 177.42 and as calculated
7.31by the Department of Labor and Industry; or
7.32(2) paying at least the required rate established in a registered apprenticeship agreement
7.33for apprentices registered with the Department of Labor and Industry.
8.1An employer electing this option is deemed to be in compliance with this section for
8.2construction industry employees who receive either at least the prevailing wage rate or the
8.3rate required in the applicable apprenticeship agreement regardless of whether the employees
8.4are working on private or public projects.
8.5    (e) This section does not prohibit an employer from establishing a policy whereby
8.6employees may donate unused accrued sick and safe time to another employee.
8.7    (f) This section does not prohibit an employer from advancing sick and safe time to an
8.8employee before accrual by the employee.
8.9    Subd. 13. Termination; separation; transfer. This section does not require financial
8.10or other reimbursement to an employee from an employer upon the employee's termination,
8.11resignation, retirement, or other separation from employment for accrued earned sick and
8.12safe time that has not been used. If an employee is transferred to a separate division, entity,
8.13or location, but remains employed by the same employer, the employee is entitled to all
8.14earned sick and safe time accrued at the prior division, entity, or location and is entitled to
8.15use all earned sick and safe time as provided in this section. When there is a separation from
8.16employment and the employee is rehired within 180 days of separation by the same employer,
8.17previously accrued earned sick and safe time that had not been used must be reinstated. An
8.18employee is entitled to use accrued earned sick and safe time and accrue additional earned
8.19sick and safe time at the commencement of reemployment.
8.20    Subd. 14. Employer succession. (a) When a different employer succeeds or takes the
8.21place of an existing employer, all employees of the original employer who remain employed
8.22by the successor employer are entitled to all earned sick and safe time accrued but not used
8.23when employed by the original employer, and are entitled to use all earned sick and safe
8.24time previously accrued but not used.
8.25    (b) If, at the time of transfer of the business, employees are terminated by the original
8.26employer and hired within 30 days by the successor employer following the transfer, those
8.27employees are entitled to all earned sick and safe time accrued but not used when employed
8.28by the original employer, and are entitled to use all earned sick and safe time previously
8.29accrued but not used.

8.30    Sec. 2. REPEALER.
8.31Minnesota Statutes 2016, section 181.9413, is repealed.

9.1    Sec. 3. EFFECTIVE DATE.
9.2Sections 1 and 2 are effective 180 days following final enactment.


9.5    Section 1. [177.50] EARNED SICK AND SAFE TIME ENFORCEMENT.
9.6    Subdivision 1. Definitions. The definitions in section 181.9445, subdivision 1, apply to
9.7this section.
9.8    Subd. 2. Rulemaking authority. The commissioner may adopt rules to carry out the
9.9purposes of this section and section 181.9445.
9.10    Subd. 3. Report of violations. An employee or other person may report to the
9.11commissioner any suspected violation of section 181.9445. The commissioner may initiate
9.12an investigation pursuant to a report or when the commissioner has reason to believe that
9.13a violation of this section or section 181.9445 has occurred.
9.14    Subd. 4. Submission of records; penalty. The commissioner may require the employer
9.15of employees working in the state to submit to the commissioner photocopies, certified
9.16copies, or, if necessary, the originals of employment records that the commissioner deems
9.17necessary or appropriate. The records that may be required include full and correct statements
9.18in writing, including sworn statements by the employer, containing information relating to
9.19wages, hours, names, addresses, and any other information pertaining to the employer's
9.20employees and the conditions of their employment as the commissioner deems necessary
9.21or appropriate. The commissioner may require the records to be submitted in a specific
9.22format by certified mail delivery or, if necessary, by personal delivery by the employer or
9.23a representative of the employer, as authorized by the employer in writing. The commissioner
9.24may fine the employer up to $10,000 for each failure to submit or deliver records as required
9.25by this section. This penalty is in addition to any penalties provided under section 177.32,
9.26subdivision 1. In determining the amount of a civil penalty under this subdivision, the
9.27appropriateness of such penalty to the size of the employer's business and the gravity of the
9.28violation shall be considered. If an employer fails to maintain or retain adequate records or
9.29fails to submit or deliver records as required by this section and an issue arises as to an
9.30alleged violation of an employee's rights under this chapter, it shall be presumed that the
9.31employer has violated this chapter, absent clear and convincing evidence otherwise.
9.32    Subd. 5. Compliance orders. The commissioner may issue an order requiring an
9.33employer to comply with this section. The commissioner shall issue an order requiring an
10.1employer to comply with this section if the violation is repeated. A violation is repeated if
10.2at any time during the two years that preceded the date of violation the commissioner issued
10.3an order to the employer for a violation of this section and the order is final or the
10.4commissioner and the employer have entered into a settlement agreement that required the
10.5employer to pay back earned sick and safe time. The department shall serve the order upon
10.6the employer or the employer's authorized representative in person or by certified mail at
10.7the employer's place of business. An employer who wishes to contest the order must file
10.8written notice of objection to the order with the commissioner within 15 calendar days after
10.9being served with the order. A contested case proceeding must then be held in accordance
10.10with sections 14.57 to 14.69. If, within 15 calendar days after being served with the order,
10.11the employer fails to file a written notice of objection with the commissioner, the order
10.12becomes a final order of the commissioner.
10.13    Subd. 6. Employer liability. (a) If the commissioner finds that an employer has violated
10.14any section or any rule adopted under this section, and the commissioner issues an order to
10.15comply, the commissioner shall order the employer to cease and desist from engaging in
10.16the violative practice and to take affirmative steps that in the judgment of the commissioner
10.17will effectuate the purposes of the section or rule violated. The commissioner shall order
10.18the employer to pay to the aggrieved parties back pay, gratuities, and compensatory damages,
10.19less any amount actually paid to the employee by the employer, and for an additional equal
10.20amount as liquidated damages. In addition, the commissioner may order the employer to
10.21pay civil penalties of up to $1,000 per violation. The commissioner must consider the factors
10.22described in section 14.045, subdivision 3, paragraph (a), when assessing these civil penalties.
10.23(b) If the commissioner determines that an employer has repeatedly or willfully violated
10.24this section or any rule adopted under this section, the commissioner must order the employer
10.25to pay a civil penalty of up to $10,000 per violation. The commissioner must consider the
10.26factors described in section 14.045, including those contained in section 14.045, subdivision
10.273, paragraph (b), when assessing these civil penalties.
10.28(c) In addition, the commissioner may order the employer to reimburse the department
10.29and the attorney general for all appropriate litigation and hearing costs expended in
10.30preparation for and in conducting the contested case proceeding, unless payment of costs
10.31would impose extreme financial hardship on the employer. If the employer is able to establish
10.32extreme financial hardship, then the commissioner may order the employer to pay a
10.33percentage of the total costs that will not cause extreme financial hardship. Costs include
10.34but are not limited to the costs of services rendered by the attorney general, private attorneys
10.35if engaged by the department, administrative law judges, court reporters, and expert witnesses,
11.1as well as the cost of transcripts. Interest shall accrue on, and be added to, the unpaid balance
11.2of a commissioner's order from the date the order is signed by the commissioner until it is
11.3paid, at an annual rate provided in section 549.09, subdivision 1, paragraph (c). The
11.4commissioner may establish escrow accounts for purposes of distributing damages.
11.5(d) It is the responsibility of all employers to not enter into any contract or agreement
11.6for labor or services where the employer has any actual knowledge or knowledge arising
11.7from familiarity with the normal facts and circumstances of the business activity engaged
11.8in, or has any additional facts or information that, taken together, would make a reasonably
11.9prudent person undertake to inquire whether, taken together, the contractor is not complying
11.10or has failed to comply with this section. For purposes of this paragraph, "actual knowledge"
11.11means information obtained by the employer that the contractor has violated this section
11.12within the past two years and has failed to present the employer with credible evidence that
11.13such noncompliance has been cured going forward.
11.14    Subd. 7. Individual remedies. In addition to any other remedies provided by law, a
11.15person injured by a violation of this section may bring a civil action to recover any and all
11.16damages recoverable by law, together with costs and disbursements, including reasonable
11.17attorney fees, and may receive injunctive and other equitable relief as determined by a court.
11.18    Subd. 8. Grants to community organizations. The commissioner may make grants to
11.19community organizations for the purpose of outreach to and education for employees affected
11.20under this section regarding their rights under this section. The community-based
11.21organizations must be selected based on their experience, capacity, and relationships in
11.22high-violation industries. The work under such a grant may include the creation and
11.23administration of a statewide worker hotline.
11.24    Subd. 9. Report to the legislature. (a) The commissioner must submit an annual report
11.25to the legislature, including to the chairs and ranking minority members of any relevant
11.26legislative committee. The report must include, but is not limited to:
11.27(1) a list of all violations of this section, including the employer involved, and the nature
11.28of any violations; and
11.29(2) an analysis of noncompliance with this section, including any patterns by employer,
11.30industry, or county.
11.31(b) A report under this section must not include an employee's name or other identifying
11.32information, any health or medical information regarding an employee or an employee's
11.33family member, or any information pertaining to domestic abuse, sexual assault, or stalking
11.34of an employee or an employee's family member.
12.1EFFECTIVE DATE.This section is effective 180 days after final enactment."
12.2Amend the title accordingly